Search found 25 matches

by nielkfj
Tue May 26, 2020 7:58 pm
Forum: Canada / United States Tax & Accounting
Topic: Do I Need an AIS for a PFIC?
Replies: 1
Views: 162

Do I Need an AIS for a PFIC?

I am considering putting some money into a Canadian ETF as an investment. Since it is Canadian it will be considered a PFIC by the IRS. However the company that runs the ETF does not issue “Annual Information Statements” (AIS). 1) Is it a lot more difficult to report income from a PFIC on my U.S. ta...
by nielkfj
Tue May 26, 2020 7:02 pm
Forum: Canada / United States Tax & Accounting
Topic: Questions About Claiming Foreign Tax Credits
Replies: 6
Views: 331

Re: Questions About Claiming Foreign Tax Credits

nelsona wrote:
> I have brain cells to think about, too.
> Sorry.

OK, thanks anyway.
I'm pretty sure that the steps I described in my previous comment are correct.
by nielkfj
Sun May 24, 2020 8:49 pm
Forum: Canada / United States Tax & Accounting
Topic: Questions About Claiming Foreign Tax Credits
Replies: 6
Views: 331

Re: Questions About Claiming Foreign Tax Credits

nelsona wrote: > I think you can figure this out. Thanks for the vote of confidence, but I was trying to save a few brain cells by not having to. I already expended several million so far (haha). Anyhow, from what I got out of the instructions for form 1116 and Publication 514, it appears that basic...
by nielkfj
Fri May 22, 2020 10:24 pm
Forum: Canada / United States Tax & Accounting
Topic: Questions About Claiming Foreign Tax Credits
Replies: 6
Views: 331

Re: Questions About Claiming Foreign Tax Credits

nelsona wrote: > 1. Yes. You use the taxes paid in canada for PASSIVE income, against the US > tax owed for PASSIVE income. Actually I was asking about using taxes paid in the US on TFSA income against Canadian tax owed. But you answered this in your answer 2 below. Anyhow, I imagine that since tax ...
by nielkfj
Fri May 22, 2020 12:28 pm
Forum: Canada / United States Tax & Accounting
Topic: Questions About Claiming Foreign Tax Credits
Replies: 6
Views: 331

Questions About Claiming Foreign Tax Credits

I have some questions about claiming foreign tax credits on Canadian and U.S. tax returns: 1) If U.S. tax is paid for capital gains and dividends on a TFSA account (which I understand is taxable in the U.S.), can that tax be used as a foreign tax credit to offset Canadian tax on capital gains and di...
by nielkfj
Thu May 07, 2020 10:50 pm
Forum: Canada / United States Tax & Accounting
Topic: Form 1116 - Apportionment of Expenses Losses and Deductions
Replies: 8
Views: 1037

Re: Form 1116 - Apportionment of Expenses Losses and Deductions

By the way, can you recommend a good software package for doing U.S. tax returns for U.S. expats living in Canada?
by nielkfj
Thu May 07, 2020 9:59 pm
Forum: Canada / United States Tax & Accounting
Topic: Form 1116 - Apportionment of Expenses Losses and Deductions
Replies: 8
Views: 1037

Re: Form 1116 - Apportionment of Expenses Losses and Deductions

nelsona wrote:
> Yes. Get some software.

Thanks again.

For sure I intend to get software next month when I do my taxes. Right now I am just making a spreadsheet to do some basic tax U.S. tax calculations for some investment ideas I am considering.
by nielkfj
Thu May 07, 2020 9:56 pm
Forum: Canada / United States Tax & Accounting
Topic: Allocating Canadian Taxes on Form 1116
Replies: 7
Views: 1168

Re: Allocating Canadian Taxes on Form 1116

nelsona wrote:
> Correct.

Great. Thanks for all the answers.
by nielkfj
Thu May 07, 2020 1:04 pm
Forum: Canada / United States Tax & Accounting
Topic: Form 1116 - Apportionment of Expenses Losses and Deductions
Replies: 8
Views: 1037

Re: Form 1116 - Apportionment of Expenses Losses and Deductions

nelsona wrote:
> It will be prorated.

I'm not sure what you mean by "prorated."

Do you mean the amounts will be divided amongst the income categories in proportion to the income in each category?
by nielkfj
Wed May 06, 2020 1:15 pm
Forum: Canada / United States Tax & Accounting
Topic: Allocating Canadian Taxes on Form 1116
Replies: 7
Views: 1168

Re: Allocating Canadian Taxes on Form 1116

nelsona wrote: > Your taxes are prorated just like the income, except for cap gains and for > dividends which have their own tax rates in Canada and must be accounted > for. By "prorated" do you mean allocated in the same proportions to the different income amounts? If I understand you correctly for...
by nielkfj
Wed May 06, 2020 12:42 pm
Forum: Canada / United States Tax & Accounting
Topic: Allocating Canadian Taxes on Form 1116
Replies: 7
Views: 1168

Re: Allocating Canadian Taxes on Form 1116

adeboloj wrote: > Regardless of income category or say any income received, you put in the > values of your gross income or taxes in US$ on the software. > For example, Taxact ask you this question for both currencies i.e. the > foreign currency and the US currency on 1116 form. > So you need to mak...
by nielkfj
Sun May 03, 2020 6:57 pm
Forum: Canada / United States Tax & Accounting
Topic: Allocating Canadian Taxes on Form 1116
Replies: 7
Views: 1168

Allocating Canadian Taxes on Form 1116

When Canadian taxes paid are related to more than income category on the 1116 forms, do you calculate the allocation of taxes using net income values in CA$ or US$? Publication 514 (page 12) says: https://www.irs.gov/pub/irs-pdf/p514.pdf “You do this by multiplying the foreign income tax related to ...
by nielkfj
Sun May 03, 2020 6:43 pm
Forum: Canada / United States Tax & Accounting
Topic: Form 1116 - Apportionment of Expenses Losses and Deductions
Replies: 8
Views: 1037

Re: Form 1116 - Apportionment of Expenses Losses and Deductions

I don't have software right now. I am just making a spreadsheet to do the basic calculations for a U.S. return to help me with some investment decisions.

But I take it your point is that you don't know of any Canadian rules for apportionment of expenses, so there likely aren't any.
by nielkfj
Sun May 03, 2020 1:12 pm
Forum: Canada / United States Tax & Accounting
Topic: Form 1116 - Apportionment of Expenses Losses and Deductions
Replies: 8
Views: 1037

Form 1116 - Apportionment of Expenses Losses and Deductions

On form 1116 (Foreign Tax Credit), how are expenses, losses and other deductions that are not definitely related to one category of income apportioned between all categories of income? Publication 514 (page 13) says: “… they are apportioned under the principles of the foreign law. If the foreign law...
by nielkfj
Sun May 03, 2020 1:09 pm
Forum: Canada / United States Tax & Accounting
Topic: Form 1116 HTKO?
Replies: 10
Views: 1216

Re: Form 1116 HTKO?

I'm just saying that I agree with you that 39.6% is the tax rate that determines whether HTKO applies. That's what the tax code says, as far as I can tell.